Hill Osborne urges business owners to get advice now as HMRC starts digitization roll-out

James Hill director at Hill Osborne
James Hill director at Hill Osborne

Dorset based Independent Chartered Accountants and Business Advisers, Hill Osborne, has urged business owners to ensure they are ready for HMRC’s Making Tax Digital (MTD) initiative which officially came into force on 1 April 2019, initially affecting businesses with a turnover above the current VAT threshold of £85,000.

Under the new rules, which herald just the start of a major shake-up within HMRC, businesses must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD ‘functional compatible software’.

James Hill, director at Hill Osborne, explained: “The government had planned to require businesses to keep digital records and update HMRC quarterly for income tax from 2018, but these proposals have been deferred. However, regulations have been issued which set out requirements for MTD for VAT.  Therefore, generally speaking, the new rules apply to the first VAT quarter commencing on or after 1 April 2019.  Due to this change in strategy, many business owners may be confused or unsure as to exactly how this affects them, or, of the deadlines they need to adhere to – the first being in June for most businesses - and for this reason, we urge anyone who has questions to get in touch with us now, so as we can ensure all procedures required by your business and MTD are carried out correctly and on time, and no fines by HMRC are issued.  

“Under the new MTD rules, businesses will have to use a software program, or set of compatible software programs which can connect to HMRC systems via an Application Programming Interface (API) capable of keeping records in digital form as specified by the new rules; preserving digital records in digital form; creating a VAT return from the digital records held in compatible software and submitting this data to HMRC digitally; providing HMRC with VAT data on a voluntary basis, and finally, receiving, via the API platform, information from HMRC to ascertain compliance.

“Whatever the size of your business, there is a time of great change ahead, and Hill Osborne is on hand to help and advise with all the challenges business owners face as HMRC starts it digitalization process.”

To get advice on how HMRC’s MTD will affect your business, call 01202 678555 or email info@hillosborne.com

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